Abbott Laboratories (ABT), Seattle Genetics, Inc. (SGEN) Sign Cancer Pact Worth $245 Million
10/23/2012 8:33:53 AM
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Abbott Laboratories (ABT) will pay a $25 million upfront fee to Seattle Genetics Inc. (SGEN) for expanded rights to utilize Seattle Genetics' technology for cancer. The expanded collaboration between the two drug companies allows Abbott to gain rights to utilize Seattle Genetics' auristatin-based antibody-drug conjugate technology with antibodies to additional oncology targets. In addition, Seattle Genetics may receive up to $220 million in potential milestone payments per additional target upon achieving predetermined objectives, as well as mid-to-high single-digit royalties on worldwide net sales of any resulting products under the collaboration. "ADCs have emerged as an important therapeutic approach to cancer, driven by the FDA approval of Adcetris, and encouraging data from numerous clinical and preclinical ADC programs in development by Seattle Genetics and our collaborators," said Natasha Hernday, vice president of corporate development at Seattle Genetics. "This expanded collaboration with Abbott further validates our technology and approach in targeting and treating cancer." Antibody-drug conjugates are monoclonal antibodies that are designed to selectively deliver cytotoxic agents to tumor cells. Adcetris is the first drug approved utilizing Seattle Genetics' ADC technology.